Tag Archives: Ivey School

Li Lu’s Lecture; Value Investing Videos

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JUN 24, 2010

Li Lu’s 2010 Lecture at Columbia

Many of you enjoyed my previous transcript of a talk Li Lu gave at Columbia University. Thanks to Joe Koster, you can now view a more recent lecture he gave to Bruce Greenwald’s value investing class in April of 2010. Seen here: http://www7.gsb.columbia.edu/video/v/node/1365?page=26 Based on Berkshire’s investment in BYD, the fact that Lu manages Charlie Munger’s money, and that even Buffett would give money to Lu if he ever retired (according to Greenwald) makes me think Li Lu is an investor worth watching.

With that in mind, I believe it is insightful to study whatever you can find about him and his approach. I think this lecture from 2010 is great. The recording has some audio issues making it difficult to hear and I thought that some of you might enjoy reading notes from the talk. This is not a true transcript, but an approximation of what was said. I think it comes pretty close, having listened to the lecture a few times. I think you will find it helpful and Lu’s talk rewarding.

Bruce Greenwald: Warren Buffett says that when he retires, there are three people he would like to manage his money. First is Seth Klarman of the Baupost Group, who you will hear from later in the course. Next is Greg Alexander of the Sequoia Fund. Third is Li Lu. He happens to manage all of Charlie Munger’s money. I have a small investment with him and in four years it is up 400%.



Letters to a young analyst (Great blog for books): 


Scottish Vote on Independence: https://www.youtube.com/watch?v=PD5Imb7vWSc


Notes on Buffett’s Meeting with Ivey MBA Students on March 30, 2012

Notes on Buffett Lecture to Ivey School Students: Ivey School_2012_Buffett_Notes

Mr. Buffett will often repeat the same concepts and stories to the students. But let’s read what he has to say about certain subjects.

On Valuation: When valuing a business we should think of it as “deferring consumption and laying money out now to get more money back at a later date”–i.e., the two birds in the bush. There are two major questions to be answered: 1. How much money will investors get back? and 2. When will they get it back?

What I seek is certainty about the pay-off, make sure there are two in the bush. The way I deal with certainty is to find companies that have historically great returns and earnings, leveraging on a competitive advantage.

Passion: My passion was valuation

Information: People have better information now, but they still react irrationally.


  • Buy equities strategically and opportunistically.

  • But ultimately, the key to success is emotional stability.

  • Someone with intellectual curiosity can learn the profession.